Tuesday, December 16, 2008
After Rate Cuts: The Fed's New Ball Game
This article talks about the Fed's new plan to save the economy and bring us out of the recession. It says that the main instrument (that they hope will be effective) is to print a bunch of money. Everything I have learned in my economic education has shown that this is not the answer. This article acknowledges that the end result could be high inflation and even larger government debt when the recession is cleared. So what are they thinking?? Is a short term fix really that important that we want to cause irreparable damage??
Subscribe to:
Post Comments (Atom)
2 comments:
I personally feel that the rates being controlled so much and not allowed to be set at market levels has put the United States in this position in the first place. I think that this recession has prevented any real inflation but I do feel that once the recession has cleared that inflation will become the next issue.
Yeah, I agree with Logan. A short term fix is not worth it. We need to let the market decide, enough with these policies of printing money, that is not getting to the root of the problem.
Post a Comment